Self Employed with PayPal, discrepancy with the State field on my 1099K form.

Form 1099-K is an informational form, the information is used to prepare your tax return.  Could you please clarify why you received Form 1099-K, as the reason for receiving it will determine how to enter the information on the form on your tax return?

I received Form 1099K from PayPal for surpassing the $20,000 and 200+ transactions over the last year. Let me know if that answers your question!

You will need to file Schedule C Profit or Loss from Business to report the income on your 1099-K and your expenses, to include the cost of the items sold, to figure your net profit.  

 

To enter your 1099-K on a Schedule C follow these steps:

1. Open your return.
2. Search for schedule c and click the Jump to link in the search results.
3. Answer Yes to Did you have any self-employment income or expenses?
4. Follow the on-screen instructions.
5. On the page titled, Your info, scroll to the bottom and click Looks Good.
6. Click on Form 1099-NEC on the page Let’s enter the income.
7. Click continue.
8. Follow the on-screen instructions.
9. Enter any relevant expenses to your business.  

If you are entering income from a 1099-K, remember that it reports the gross amount of the transactions. It doesn't include any adjustments for credits, refunds, discounts, or fees. You’ll have a chance to enter self-employment expenses in another part of your return.

 

This link How do I enter a 1099-K in TurboTax Online? has information that you may find helpful. 

Thank you for the info!

 

However, I am still not sure the answer to my original question... does it matter that PayPal marked my 1099K form with a state that I don't reside in, or will it be okay since I am filing a Schedule C anyways?

No, it does not matter that PayPay used your mailing address state instead of your actual state. Form 1099-k is an informational form and you will only enter the amount reported.  You do not enter any information related to your address on Form 1099-K in your tax return

Sweet thank you very much for the help and the info about the Schedule C Form!